Meanwhile, investors dumped expensive growth and tech shares and snapped up small-caps and cyclicals that would benefit the most from an economic recovery from the pandemic. Futures on the Nasdaq 100 slumped 1.5%, at one point tumbling over 800 points from Monday highs, while contracts on the Russell 2000 rose almost 2%. Netflix, Facebook, Apple fell between 1.8% and 2.3% as investors rotated into sectors that are expected to benefit from a full reopening of the economy.

Amazon.com slipped in the pre-market after news it faces an antitrust complaint from European Union regulators. Beijing on Tuesday unveiled regulations to root out monopolistic practices in the internet industry, helping drive down shares of gaming-to-payment giant Tencent Holdings Ltd. and e-commerce titan Alibaba Group Holding Ltd.

Surging coronavirus cases and legal challenges to the U.S. election outcome also weighed on sentiment. The U.S. surpassed 10 million Covid-19 cases on Monday and appeared poised to hit record hospitalizations later this week.